 Revisiting the dynamic effect of foreign direct investment on economic growth in LDCsMd Al Mamun and Kazi Sohag () International Journal of Economic Policy in Emerging Economies, 2015, vol. 8, issue 2, 97-118 Abstract: The relationship between foreign direct investment (FDI) and gross domestic product (GDP) has long been considered as an unresolved debate in growth literature. Scores of studies have highlighted ambiguous conclusion regarding the exact effect of FDI on economic growth among the recipient countries. Though transfers of technologies, development of financial sectors across the world including in the LDCs have promised a positive role of FDI in the LDCs, however, lack of transparency, accountability, widespread corruption including the motivation of the MNCs have always clouded the outcome. Using most robust methodologies for panel data, this study concludes that LDCs thrive towards growth appetite can very little be fulfilled with FDI, rather domestic fixed capital formulation, efficient use of the existing abundant labour force can foster the economic growth much aggressively even in the long run. Keywords: dynamic panel analysis; economic growth; foreign direct investment; FDI; LDCs; non-monotonic relationship; gross domestic product; GDP; least developed countries; technology transfer; transparency; accountability; corruption; domestic fixed capital formulation; existing labour force. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijepee:v:8:y:2015:i:2:p:97-118 Access Statistics for this article More articles in International Journal of Economic Policy in Emerging Economies from Inderscience Enterprises Ltd |
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